Correlation Between Uxi Unicomp and Lushang Property

Can any of the company-specific risk be diversified away by investing in both Uxi Unicomp and Lushang Property at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Uxi Unicomp and Lushang Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Uxi Unicomp Technology and Lushang Property Co, you can compare the effects of market volatilities on Uxi Unicomp and Lushang Property and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Uxi Unicomp with a short position of Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uxi Unicomp and Lushang Property.

Diversification Opportunities for Uxi Unicomp and Lushang Property

0.22

Correlation Coefficient

Uxi Unicomp  Lushang Property

Modest diversification

The 3 months correlation between Uxi and Lushang is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Uxi Unicomp Technology and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property and Uxi Unicomp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Uxi Unicomp Technology are associated (or correlated) with Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Uxi Unicomp i.e., Uxi Unicomp and Lushang Property go up and down completely randomly.

Pair Corralation between Uxi Unicomp and Lushang Property

Assuming the 90 days trading horizon Uxi Unicomp Technology is expected to generate 1.13 times more return on investment than Lushang Property. However, Uxi Unicomp is 1.13 times more volatile than Lushang Property Co. It trades about 0.13 of its potential returns per unit of risk. Lushang Property Co is currently generating about -0.08 per unit of risk. If you would invest  5,063  in Uxi Unicomp Technology on December 26, 2024 and sell it today you would earn a total of  870.00  from holding Uxi Unicomp Technology or generate 17.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Uxi Unicomp Technology  vs.  Lushang Property Co

Uxi Unicomp Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Uxi Unicomp Technology are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Uxi Unicomp sustained solid returns over the last few months and may actually be approaching a breakup point.

Lushang Property

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lushang Property Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Uxi Unicomp and Lushang Property

The main advantage of trading using opposite Uxi Unicomp and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uxi Unicomp position performs unexpectedly, Lushang Property can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lushang Property will offset losses from the drop in Lushang Property's long position.

The idea behind Uxi Unicomp Technology and Lushang Property Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.